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Mainland sets production casing at Burkley-Phillips #1 well


Published Jan 5, 2011
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Mainland Resources appoints William D. Thomas as CFO

Mainland Resources, Inc. reports that it has set production casing at its Burkley-Phillips #1 well in Jefferson County, Mississippi. At a total depth of 22,000 feet, this well qualifies as one of the top-ten deepest US onshore wells drilled in 2010.

This well was drilled to explore the oil and gas potential in a region of Mississippi where theHaynesville Shale was unknown with the single exception of a nearby well that was drilled in1981 by Chevron through a 2,000 foot Haynesville Shale interval prior to the application ofmodern shale gas identification and production techniques.

The analysis of the electric line logging information and the 21-foot full core Haynesville Shalesample taken at a depth of 20,415 feet, utilizing Schlumberger's and Core Laboratory's industryleading technologies, are being used to confirm reservoir characteristics and validate theCompany's observations of the core sample that a natural fracture system exists withinMainland's Haynesville Shale acreage in Mississippi.

Management expects the information gathered using these state-of-the-art industry techniqueswill provide a more accurate understanding of the prospectivity of the Haynesville Shale.Specifically, information related to volumes of gas in place within the matrix, porosity,permeability, gas quality, mineralogy and total organic content will be directly analyzed from thefull core. The Company believes that the Haynesville Shale may extend beyond a 2,000 foot vertical section based on technical information gathered to date.

Nick Atencio, Mainland CEO states, "We have now completed the drilling and casing phase ofthis project and are transitioning into the analysis and testing phases. We are anxious to see theresults of these analyses to further quantify the potential of the Haynesville Shale, in addition tothe other potentially productive zones we encountered within this wellbore."

To date, the Company has incurred expenditures of $9.5 million drilling the well in a very timelyand cost efficient manner. The Burkley-Phillips #1 well has been advanced to the productioncasing stage approximately 40 days faster than the most recent offset well drilled to this depth.

Results from the ongoing analyses of the Burkley-Phillips #1 well will be communicated as they are completed.

Tags: Mainland Resources




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